What is the dependent child credit (also known as the “kiddie tax credit”)?
• The Taxpayer Relief Act of 1997 created a new type of tax credit for parents, grandparents and others who are responsible for the care of children under the age of 17. Families that qualify receive a credit of $500 per child in 1999. The credit is phased out for married couples whose combined adjusted gross income tops $110,000 and for single people whose adjusted gross income is above $75,000. The amount of the credit is reduced by $50 for each $1,000 in income over these income limits.
